NVIDIA Corporation, Advanced Micro Devices Inc., Snowflake Inc., and Target Corporation were in the spotlight this week. Let’s find out how their stocks reacted to the latest events.

Target: stock price drops amid criticism

Target: stock price drops amid criticism

The stock price of Target Corporation (NYSE: TGT), one of the largest US retailers known as Target and SuperTarget, has fallen 7.57% to 140.75 USD since Monday.

This drop in the price could be attributed to a wave of social media misinformation and criticism against its Pride collection. Target Corporation offers over 2,000 products, including clothing, books, music, and home accessories, as part of its Pride collection which is aimed to show support for LGBTQ+ people.

Target Corporation management has decided to remove some items from the collection following threats and aggressive homophobic comments, citing a desire to protect the safety of the company’s staff. There is no official information on which goods will be disappearing from the shelves of the retailer’s stores.

Snowflake report: revised forecast sent the shares down

Snowflake report: revised forecast sent the shares down

Snowflake Inc. specialised in cloud-based data processing and storage technologies reported for the first quarter of fiscal 2024 on Wednesday 24 May. Compared to the same period last year, revenue increased by 47.64% to 623.6 million USD. According to Bloomberg, analysts had forecast 646.3 million USD. The net loss added 36.35%, rising to 226.06 million USD or 0.7 USD per share. 

Snowflake Inc. management lowered its full-year product revenue forecast from 2.7 billion USD to 2.6 billion USD. Experts attribute the change in the forecast to a significant reduction in information technology costs in the global economy.

Snowflake Inc. (NYSE: SNOW) stock tumbled 16.50% to 147.91 USD per unit on 25 May, following an increase in the quarterly net loss and the revision of the annual product revenue forecast. This was the company’s biggest one-day drop in the share price since it went public on 16 September 2020.

NVIDIA report: profit increased 26%

NVIDIA report: profit increased 26%

NVIDIA Corporation, the US developer of graphics processing units and chips, reported its results for Q1 2024 on Wednesday. Total revenue for February – April declined 13.22% to 7.19 billion USD, exceeding the consensus forecast of 6.53 billion USD.

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Gaming segment revenue declined 38% to 2.24 billion USD while revenue from the data centre segment added 14% to 4.28 billion USD. The forecast was 1.97 billion USD for the first indicator and 3.93 billion USD for the second one. As for net profit, it increased 26.27% to 2.04 billion USD or 0.82 USD per share.

Management expects Q2 2024 revenue to reach a record 11 billion USD while Wall Street analysts forecast 7.17 billion USD. In addition, the corporation said it is ramping up production to meet the strong demand for chips for AI technologies. NVIDIA Corporation (NASDAQ: NVDA) shares gained 24.37% to 379.8 USD per unit on 25 May.

AMD: stock gained 14%

AMD: stock gained 14%

The earnings report and forecast released by NVIDIA Corporation had a positive effect on the stock of Advanced Micro Devices Inc. (NASDAQ: AMD). Since Monday, the shares of one of the largest manufacturers of central processor units (CPU), graphics processors, adapters, and chipsets gained 13.73% to 120.35 USD per unit.

In addition, this week, Advanced Micro Devices Inc. introduced the Radeon RX 7600 graphics card designed for next-generation games with 1080р resolution and a new line of AMD Ryzen and Athlon 7020 C-Series processors that deliver high levels of performance.

It was announced on Wednesday that Advanced Micro Devices Inc. is collaborating with Microsoft Corporation on developing the structural elements needed by AI product developers and consumers. As part of the project, AMD will grant Windows developers early access to the Ryzen AI software, which could accelerate the adoption of AI in Windows 11. 

Summing up

This month, Target Corporation faced criticism from a conservative part of its client base for its collection dedicated to Pride month. This had a negative impact on the company’s stock: it has tumbled 8% since Monday.

Snowflake Inc. and NVIDIA Corporation released their Q1 2024 reports. The quotes of the first company dropped by 17% while those of the second company rose by 24%.

Advanced Micro Devices Inc. shares have gained 14% since Monday, following the announcement of the release of new products, news about the collaboration with Microsoft Corporation, and the release of a competitor’s report.

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